Stocks quoted in this article:
Biotechnology name Chiron (CHIR – 41-9/16) announced that its third-quarter profit from operations was 23 cents per share, which was six cents per share ahead of Street expectations. However, the company also revealed weaker-than-expected sales of its flagship drug, Proleukin, leading multiple brokers to downgrade the equity today.
At this morning's open, the shares gapped almost nine points lower, and they are currently down by over 17 percent. From its October 9 intraday low to yesterday's near-term intraday high, CHIR had advanced by nearly 42 percent. With today's plunge, though, the stock is trading back below both its 10-day and 20-day moving averages as well as its 10-month trendline.
In CHIR's options pit today, the out-of-the-money November 50 call has seen volume of 1,318 contracts. Open interest on the option stands at 1,109 contracts.